What Do You Need to Know About Employee Termination in the UAE?

Understanding labor laws and the employee termination processes is a very important aspect for all employers and employees worldwide. Protecting one’s rights can save you from unnecessary legal consequences, and also foster healthy transition relationships. So, if you’re navigating within a termination scenario, or just willing to know more on this, keep reading to ensure your compliance at all times.

Insights to know about UAE’s Employee Laws

In the United Arab Emirates, all the laws concerning employees that you can remember, come under the Federal-Decree Law No. 33 of 2021 within the regulations of labor relations.

What are the Types of Terminations?

There are several ways, that could cause or lead to the termination of employees, which include:

• Mutual Agreement – Here, both the parties (the employer, and the employee) completely understand their ending work relationship.
• Resignation – Here, the employee voluntarily decides to leave the job, informing with a prior notice in hand.
• Termination by the Employer – According to the labor law and company policies, every company has its rules set, here, the employer dismisses the employee for specific reasons according to those labor laws.
• End-of-Term Contract Basis – The employment relationship concludes as per the contract without further renewals.

Ground Rules that an Employer Should Know Before Terminating any Employee:

Before termination of any employee, the employer should provide a valid set of reasons regarding their termination.

The UAE Labour law consists of two scenarios that mainly happen.

1. Lawful Termination – In this scenario, the employer lawfully terminates the employee for various reasons, such, as poor performance, redundancy of any sort, or in cases where company policies are breached.

The employer must always follow the contractual notice period unless any other decisions.

2. Termination without Notice – The employer can terminate any employee under any gross misconduct, meaning unlawful reasons to terminate someone. Some of them include:

• Forging documents
• Unauthorized absence for more than the preferred days mentioned (consecutively).
• Violations of Safety Regulations in the Workplace.
• Forging documents
• Unauthorized absence for more than the preferred days mentioned (consecutively).
• Violations of Safety Regulations in the Workplace.

To prove these sorts of events, the parties involved should have strong sets of evidence, until no wrongful dismissal claims should arise.

When it comes to penalties for labour law violations, the UAE government enforces strict fines to ensure compliance and protect workers’ rights. These penalties cover issues like unauthorized absences, workplace safety violations, and document forgery. Employers must adhere to regulations to avoid significant legal and financial consequences.

If you’re terminated from your workplace, what are your rights?

Knowing your rights in every workplace scenario is very important. Hence, you might face a serious crisis. Employees terminated in the UAE, are entitled to certain rights within the circumstances of their dismissal.

They include:

• End-of-Service Gratuity – The employees who have completed at least one year of service in their company are entitled to avail of this gratuity benefit. This calculation is made, based on their last drawn salary and also for how long they worked there.
• Notice-Period Compensation – If an employee is terminated by an employer without any prior notice, they have to compensate for the notice period served by the employee.
• Unpaid Wages and Leaves – Before the final work day of the employee, the employer should clear all the unpaid dues, and unused annual leaves they were entitled to avail.

Notice Period Requirements:

Every standard notice period in the UAE is for 30 days, but it may vary depending on the contractual agreements previously set. Both parties can agree to even longer notice periods while maintaining mutual consent or basic compensation.

Unlawful Termination:

When is a termination deemed unlawful? It is only when:

• It is discrimination or retaliation through any means.
• The employee is asked to leave due to pregnancy or health issues. (maternity leaves)
• The dismissal is not adhering to the rules of the UAE’s labor Law.

A complaint can be filed by the employees if they think that they were wrongfully terminated, with the Ministry of Human Resources and Emiratisation (MOHRE) or they can hire an employment lawyers in Dubai for legal counseling to protect their rights.

Probationary Periods

A written notice of at least 14 days is needed for either party to terminate the contract, during the probationary period. Employers should keep in mind that the termination taking place during this phase is aligned with the labor law to avoid disputes.

Employer Obligations Post-Termination

The employers must keep this in mind after terminating an employee :

• If requested, one should be provided with the work experience certificate.
• Pay all dues, inclusive of all gratuity and repatriation costs for the employees hired from abroad or some other state.

How can HL&A be your right hand during these situations?

These employee terminations can often bring out legal complexities and disputes. Which obviously comes along with a lot of emotional stress. To understand and follow through these processes effectively, you can take the help of HL&A, here we ensure all of the complexities are dealt with properly and effectively.

By looking out for the labor laws, HL&A supports clients in resolving disputes, drafting employment contracts, and a more professional approach to resolving termination processes smoothly.

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Conclusion

In the UAE, a delicate balance of rights and responsibilities is involved during the Termination of employment in any company.  The law must be followed by every employer to avoid legal repercussions, and the employees should be aware of their entitlements and rights. Any guidance from professionals can ease the entire process and safeguard their interests.